NOTICE DATE: August 5, 2022

NOTICE TYPE: M-B080522-01 General

SHORT DESCRIPTION: Implementation of amendments to Public Utility Commission of Texas (PUCT) Rule 25.507 regarding Emergency Response Service (ERS)

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: August 5, 2022

LONG DESCRIPTION: At the August 4, 2022 PUCT Open Meeting, the PUCT approved amendments to 16 Tex. Admin. Code (TAC) ยง 25.507, addressing ERS.  The amendments increase the annual budget for ERS to $75 million and allow ERCOT to exceed this amount by up to $25 million for ERS Contract Period renewals.  The amendments also allow ERCOT the flexibility to establish a maximum deployment obligation of up to 24 hours per ERS Contract Period and make other administrative changes to the program.  The PUCT's order approving amended rule 25.507 can be accessed at this link.

The order provides that the amended rule will be effective upon its filing with the Secretary of State.  The PUCT's website indicates that the order adopting the rule was filed with the Secretary of State on August 4, 2022.  The new allowance to spend $25 million for ERS Contract Period renewals does not require revisions to ERCOT rules for implementation.  Accordingly, and effective immediately, ERCOT will make use of these additional funds to renew the obligations of ERS Resources, if necessary, during any current or future ERS Standard Contract Term, consistent with the explicit guidance of the order adopting the rule.

However, because a Nodal Protocol Revision Request (NPRR) is necessary to increase the deployment obligation within the higher maximum allowed by the amended rule, and because an Other Binding Document Revision Request (OBDRR) - specifically, a revision to the ERS Procurement Methodology - would be necessary to increase the expenditure under the annual budget for any future ERS Standard Contract Term (not including the $25 million now available for renewals), the rule's effectiveness will not have any impact on these aspects of the program until NPRR1142, ERS Changes to Reflect Updated PUCT Rule changes re SUBST. R. 25.507, and OBDRR042, Related to NPRR1142, ERS Changes to Reflect Updated PUCT Rule Changes re SUBST. R. 25.507, are implemented following approval by the ERCOT Board of Directors (Board).

The Protocol Revision Subcommittee (PRS) and the Technical Advisory Committee (TAC) have recommended approval of NPRR1142, and TAC has recommended approval of OBDRR042, as amended by July 20, 2022 ERCOT comments, with both Revision Requests conditioned upon approval of P.U.C. SUBST. R. 25.507.  With the PUCT's August 4, 2022 approval of P.U.C. SUBST. R. 25.507, NPRR1142 and OBDRR042 will be considered by the Board at its August 16, 2022  meeting.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask].

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